Consumer Buying Behavior 3
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Transcript of Consumer Buying Behavior 3
Market Segmentatio
n
A retail market segment is a group of customers whose needs are satisfied by the same retail mix because they have similar needs.
Criteria for Evaluating Market Segments
ActionableThe defined segment clearly indicates what the retailer should do to
satisfy its needs
IdentifiableThe retailer is able to determine which customers are in the segment
SubstantialA segment must be large enough or have significant buying potential
ReachableThe retailer can target promotions and other marketing information
to consumers in the segment
Approaches for Segmenting Markets
No approach is best for all retailers so they must examine various factors and determine which are
most important.
Geographic Segmentation
This is when customers are group according to where they live. A segment can be a country or a segment within a country, such
as states, cities, and neighborhoods.
Demographic Segmentation
This is where consumers are grouped by easily measured,
objective characteristics such as age, gender, income, and
education
Geodemographic Segmentation
This is where both geographic and demographic characteristics are used to group consumers into
market segments
Lifestyle Segmentation
This type of segmentation uses how people live, spend their time
and money, as well as their activities and opinions for
dividing the market
Buying Situation Segmentation
Retailers may use buying situations as a way to segment
the market
Benefit Segmentation
This is where retailers group customers seeking similar benefits into a segment.
Composite Segmentation
Because no approach meets all the criteria for useful customer segmentation retailers
often use multiple variables to identify customers . This is known as composite segmentation and is based on benefits sought, lifestyles, and demographics.